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10x Genomics, Inc. (TXG) Presents at Bank of America Global Healthcare Conference 2026 Transcript

10x Genomics, Inc. (TXG) Shareholder/Analyst Call Prepared Remarks Transcript

Key Takeaways 10x Genomics acquires Proteintech Genomics to expand proteomics and multiomics capabilities.TXG gains 4.8% after the deal, which adds protein-analysis tools compatible with Flex workflows.Proteintech technologies support combined RNA and protein analysis across single-cell platforms. 10x Genomics (TXG - Free Report) recently announced the acquisition of Proteintech Genomics, a division within Proteintech Group that develops high-plex proteomic solutions for single-cell and spatial biology applications. The move expands TXG's capabilities in proteomics and supports its broader strategy of advancing multiomics research through integrated RNA and protein analysis.

Proteintech Genomics brings technologies, including the Human Discovery Panel, an antibody-based single-cell protein panel compatible with 10x Genomics' Flex chemistry workflows. Management believes the acquisition will strengthen its single-cell and spatial biology platforms, while the company expects the transaction to have no meaningful impact on its near-term financial outlook.

Likely Trend of TXG Stock Following the NewsShares of TXG have gained 4.8% since the announcement in yesterday’s trading. In the year-to-date period, shares of the company have gained 87.6% against the industry’s 20.5% decline.  The S&P 500 increased 8.4% in the same time frame.

The acquisition is expected to strengthen TXG's long-term growth prospects by expanding its presence in the rapidly evolving proteomics market and enhancing its multiomics capabilities. By integrating Proteintech Genomics' protein-analysis technologies with its existing single-cell and spatial platforms, TXG can offer researchers a more comprehensive view of cellular biology through combined RNA and protein measurements. The deal also has the potential to increase customer adoption, drive higher consumables usage and improve platform stickiness, while positioning the company to capitalize on emerging opportunities in AI-driven biological modeling and next-generation life sciences research.

TXG currently has a market capitalization of $3.7 billion.

Image Source: Zacks Investment Research

More on the NewsThe acquisition significantly broadens 10x Genomics' proteomics portfolio by adding Proteintech Genomics' differentiated technologies, including the Human Discovery Panel, which the company describes as the largest antibody-based single-cell protein panel.

The panel is designed to support integrated analysis of intracellular proteins, cell-surface proteins and transcriptomic profiles within sequencing-compatible workflows. Importantly, the technology is already compatible with 10x Genomics' Flex chemistry, including the Flex Apex assay, enabling researchers to combine RNA and protein measurements within a unified workflow. Management believes that integrating transcriptomic and proteomic information at the single-cell and spatial levels will play an increasingly important role in advancing biological research and discovery.

The transaction also aligns with 10x Genomics' broader strategy of enabling multimodal biological analysis across its single-cell and spatial platforms. Proteintech Genomics' protein panels were purpose-built for 10x workflows and are already being used by researchers to simultaneously analyze RNA and protein expression. By bringing these capabilities in-house, TXG aims to simplify workflows that currently require multiple vendors and technologies to harmonize RNA and protein data.

The company also sees opportunities to extend these protein-analysis capabilities to its recently launched Atera platform. Researchers across fields such as immunology, oncology, neuroscience and cell biology are increasingly adopting combined transcriptomic and proteomic approaches to gain deeper insights into cellular identity, function and disease mechanisms, making the acquisition a strategic addition to TXG's long-term innovation roadmap.

Favorable Industry Prospect for TXGPer a report by Grand View Research, the global proteomics market size was valued at $38.4 billion in 2025 and is projected to grow beyond $97.7 billion by 2033, at a CAGR of 13.3%.

The market is witnessing significant growth driven by the rising prevalence of chronic and infectious diseases, growing preference for personalized medicine and the increasing demand for rapid & advanced diagnostic solutions in target disease treatment.

Recent Developments by TXGRecently, 10x Genomics exited the first quarter of 2026 on a solid note, with both earnings and revenues surpassing the Zacks Consensus Estimate. While total revenues declined year over year due to the absence of prior-year one-time license and royalty revenues, underlying business performance remained healthy, driven by higher consumables demand, increased services revenues, growth across the EMEA and Asia-Pacific regions, expanding gross margin and disciplined cost management.

The company also significantly narrowed its operating loss year over year. During the quarter, TXG strengthened its innovation pipeline with the launch of Atera, a next-generation spatial whole-transcriptome platform that offers single-cell sensitivity at scale and is expected to support growth following its planned commercialization in the second half of 2026.

TXG’s Zacks Rank & Key PicksCurrently, TXG carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

BELLEVUE, Wash.--(BUSINESS WIRE)--Savers Value Village, Inc. (the “Company”) today announced that it plans to report its first quarter financial results on May 6, 2026 after market close. On the same day, the Company will host a conference call at 4:30 p.m. ET to discuss its financial results. Investors and analysts who wish to participate in the call are invited to dial +1 800 715 9871 (international callers, please dial +1 646 307 1963) approximately 10 minutes prior to the start of the call.

Savers Value Village (SVV - Free Report) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +14.29%. A quarter ago, it was expected that this retailer of second-hand merchandise would post earnings of $0.16 per share when it actually produced earnings of $0.15, delivering a surprise of -6.25%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Savers Value, which belongs to the Zacks Textile - Apparel industry, posted revenues of $403.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.76%. This compares to year-ago revenues of $370.14 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Savers Value shares have lost about 9.6% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Savers Value?While Savers Value has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Savers Value was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $450.72 million in revenues for the coming quarter and $0.48 on $1.77 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, V.F. (VFC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 20.

This maker of brands such as Vans, North Face and Timberland is expected to post quarterly earnings of $0.00 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

V.F.'s revenues are expected to be $2.13 billion, down 0.7% from the year-ago quarter.

Savers Value Village, Inc. (SVV) Q1 2026 Earnings Call Transcript

Savers Value Village demonstrates strong revenue and cash flow growth, yet trades at a deep discount despite a 31.3% stock price decline. SVV's 2026 outlook includes 25 new store openings, 2.5%–4% comp sales growth, and revenue guidance of $1.76–$1.79 billion. Valuation remains compelling with low to mid single-digit multiples on adjusted operating cash flow and EV/EBITDA.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #SMB--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, and GoDaddy (NYSE: GDDY), global leader in domains and tech for small businesses, today announced a strategic partnership, making LegalZoom the sole legal services provider in the GoDaddy ecosystem. This collaboration underscores both companies' shared mission of empowering small businesses with the tools, technology, and professional support they need to grow and succeed. As part of this.

SHERIDAN, Wyo., April 21, 2026 (GLOBE NEWSWIRE) -- Registered Agents Inc (RAI), the largest registered agent and business formation service in the U.S. announced today it is once again increasing its equity position in LegalZoom, acquiring 55,000 additional shares of its publicly-traded competitor. This marks the company’s third purchase of LegalZoom stock, bringing its overall total to 170,000 shares.

The move reflects RAI’s conviction that LegalZoom has the most brand awareness in the industry and is timed deliberately in the wake of LegalZoom’s widely publicized partnership with GoDaddy.

“While LegalZoom has strong brand recognition in the business formation space, this latest move tells us the company needs a partner's platform to find new customers," said Regina Blunder, Equity Portfolio Manager at RAI. "Publicly available formation data from multiple jurisdictions, including Georgia, Illinois and New Jersey shows LegalZoom currently has an acceptable market share position. The earnings per share are currently horrible, and their cash on hand is concerning relative to their unearned prepaid income position, but we believe the stock price is so low because LegalZoom is the clear leader in Share of Voice, Sentiment, and Brand Mention Volume, over other business formation specialists like ZenBusiness, Bizee, and Northwest Registered Agent.”

“Our investment reflects confidence in the broader direction of the industry,” said Allen Costly, RAI's Director of Mergers and Acquisitions. “As more Americans turn to entrepreneurship, we know companies that balance trust, accessibility and value will be best positioned to capture the next wave of business formations. Or maybe LegalZoom's stock has taken such a beating lately that they'll be an obvious target for a public to private transaction soon, and we'll luck out and get our money back or at least average out of our losses so far.”

RAI believes LegalZoom's Human in the Loop go-forward strategy could truly innovate with AI forward automation in a meaningful way, despite the discrepancy between the company's cash on hand relative to their unearned income, with their new agentic AI registration partnership with GoDaddy to create a cryptographically verifiable ANS.

"You never know," added Blunder, "maybe GoDaddy will beat OpenAi, Anthropic, Facebook, Google, Microsoft, Salesforce, and Cisco in creating trust for AI Agents, and maybe LegalZoom will explode in tech-enabled agentification with the last mile Human in the Loop customer service that everyone still wants: the perfect hybrid of humans and AI. With LegalZoom’s industry leading share of voice, they are uniquely positioned for AI growth... or an acceptable buy out offer from GoDaddy.”

Registered Agents Inc has no plans to seek a controlling interest in LegalZoom and characterizes its shareholding as a passive market investment.

For additional Q1 formation data, please visit: https://www.registeredagentsinc.com/market-share/.

About Registered Agents Inc
Registered Agents Inc is an independently owned tech enabled business services company and the nation’s largest provider of registered agent services, compliance solutions and full identity services. The company helps hundreds of thousands of entrepreneurs every year start their own business and establish a legitimate, professional presence online and in their communities. Because of its extensive internal data, Registered Agents Inc also releases its monthly Business Formation Report using real-time state-level filings, cross-referenced with U.S. Census data, to offer exclusive insights into how the small business economy is performing.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #ai--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today extended an open offer of free trademark legal services to Taylor Swift, who last week filed three trademark applications with the U.S. Patent and Trademark Office aimed at protecting her voice and likeness from unauthorized AI-generated content — including two never-before-tested "sound marks" registering the spoken phrases "Hey, it's Taylor Swift" and "Hey, it's Taylor." The filin.

Editor’s Note: I’ve been doing this long enough to know what a structural shift looks like.

It doesn’t announce itself. It doesn’t show up in the headlines. It shows up first in the data —pressure building beneath the surface of stocks that everyone assumes are safe.

Right now, I’m seeing that pressure building inside the business models of some of Wall Street’s most widely held software and AI companies.

The math changed before the narrative did at Enron.

It changed before the narrative did at Lehman. At Silicon Valley Bank. At every major blowup I’ve tracked across four decades of building quantitative models.

The stock charts looked fine. But the numbers underneath told a completely different story.

Right now, my models are picking up that same kind of stress again.

Not in the credit markets. Not in the broader economy. But inside the business models of some of the most widely held software and AI stocks on Wall Street; companies that most investors still think are bulletproof.

Most investors aren’t seeing it yet. The stocks still look fine and the narrative is still bullish. But the underlying dynamics are shifting in a big way.

My colleague Thomas Yeung has been tracking this more carefully than anyone I know. In the essay below, Tom explains what is driving this divergence — specifically, a new class of AI that operates without waiting for instructions, and what that means for the companies most investors still consider untouchable.

He also points you to a free presentation from Eric Fry, who has been studying this transition for months. Eric’s conclusion: this isn’t just volatility. It’s the early innings of a major rotation — one that could separate the next generation of big winners from the companies quietly being left behind.

I’d encourage you to read Tom’s essay carefully, and then watch Eric’s full presentation here.

The window to act is still open. But these windows have a habit of closing faster than anyone expects…

Imagine waking up one morning to find your bank account drained… your phone locked… and your passwords no longer work.

At the same time, systems you rely on every day — payments, communications, even parts of the power grid — start to glitch or go dark.

All this with no warning, no explanation, and no obvious point of entry.

Just chaos.

This is what could happen if hackers armed with AI exploited “zero-day” vulnerabilities: hidden flaws in software that no one knows exist and, therefore, has had zero days to fix.

On April 7, Anthropic released a limited version of Claude Mythos, an AI system so capable that the company immediately restricted access to it.

Mythos uncovered zero-day vulnerabilities in every major operating system, including one that had gone undetected for 27 years.

These hidden weaknesses can be exploited to steal data, seize control of computer systems, cripple critical infrastructure, and more.

Anthropic didn’t program Mythos to do this. The hacking capabilities emerged on their own.

As the company explained: “We did not explicitly train Mythos to have these capabilities. Rather, they emerged as a downstream consequence of general improvements in code, reasoning, and autonomy.”

The reaction at the highest levels was immediate. Federal Reserve Chair Jerome Powell and Treasury Secretary Scott Bessent held a closed-door meeting with top bank CEOs to discuss risks to the global financial system. Shares of major cybersecurity firms fell by double digits.

Most investors missed it entirely. The usual noise — Middle East tensions, gas prices, tariffs — drowned out what may be the single most consequential technological development of our generation.

Because Mythos isn’t just a more powerful chatbot.

It’s a signal that AI has crossed a threshold that I’ve been watching for, and writing about, for months now. We’ve moved from AI as a tool that responds to instructions… to AI that can act, adapt, and solve complex problems entirely on its own.

In my work tracking hypergrowth opportunities across decades of market cycles, shifts like this don’t just change the technology landscape. They reshuffle the entire investment landscape with them.

The companies on the right side of this shift could see the kind of explosive, compounding growth that defined the early cloud winners and the best AI infrastructure plays of the last three years.

The companies on the wrong side may not survive it.

Which side your portfolio is on right now matters more than almost anything else.

This Shift Is Already Underway To understand why Mythos matters, you need to understand what’s been building underneath it.

A new kind of AI that doesn’t just respond to prompts… but can execute complex tasks on its own.

A year ago, a Chinese startup called Manus AI introduced a system that could analyze financial transactions, screen job candidates, and navigate complex digital workflows without step-by-step human input. Retired New York Times writer Craig S. Smith called it a “game-changer.”

That forced every major Western AI company to respond. Within months, OpenAI and Anthropic released similar systems capable of handling multistep tasks, managing workflows, and making decisions with minimal oversight.

Then last November came OpenClaw, a free, open-source platform that exploded to 30 million monthly users. At Nvidia Corp.’s (NVDA) GTC conference, CEO Jensen Huang called it “probably the single most important release of software… probably ever.”

These aren’t chatbots. They’re digital workers – handling emails, moving files, managing information, writing code, reviewing contracts… and doing it around the clock without asking for a raise.

I’ve seen this firsthand. With Claude Code, I can now give an AI assistant raw financial data and ask it to build a quantitative model. It runs off by itself to write thousands of lines of code. Then it tests the model… critiques it… asks for more data… and suggests improvements. It’s no longer a robotic mecha-suit that needs a human pilot. It’s the whole machine, replacing entire teams of analysts and coders.

And if I can do that as one analyst, imagine what Anthropic’s 1,500-person engineering team came up with when they used these tools for themselves…

So even if Mythos isn’t the endpoint, it’s a clear step-change in what these systems can do. New generations of AI models typically appear six to 12 months after a major launch, and I wouldn’t be surprised if a “Mythos V2” arrives by December.

Why Your “Safe” AI Stocks May Be the Most Exposed Here’s where things get uncomfortable.

The same technology behind Mythos is now dismantling the business models behind some of Wall Street’s most popular stocks.

On Feb. 4, Anthropic released a legal plug-in for Claude Cowork. The effect on Wall Street was immediate.

Shares of Thomson Reuters Corp. (TRI) gapped down 19%. LexisNexis parent RELX Plc (RELX) dropped 15%. LegalZoom.com Inc. (LZ) crashed 20%. Wall Street has been calling this the “SaaSpocalypse,” a rolling collapse in software-as-a-service (SaaS) stocks that has now spread far beyond legal tech.

Will AI replace customer service platforms?

Real estate brokerages?

Financial services?

Business automation?

That fear isn’t misplaced. For 15 years, the SaaS profit machine worked like this: Build a dashboard, connect it to a database, charge companies $30 to $100 per month per employee to use it. The more workers a client hired, the more money software companies made. No one questioned the 95%-plus gross margins these firms routinely earned.

But agentic AI doesn’t need dashboards. It connects directly to underlying systems, pulls data, updates records, and triggers next steps automatically. When one AI agent can do the work of five junior analysts or paralegals, companies don’t just need fewer employees. They need fewer software licenses.

And if these systems get powered by a model as powerful as Mythos, the pressure on SaaS business models could accelerate very quickly.

Meanwhile, the companies you’d expect to benefit – the pure-play AI names – are trading at valuations that assume perfection.

We saw this movie before during the dot-com hysteria. Many sought-after internet darlings like Cisco Systems Inc. (CSCO), Lucent, and AOL failed to deliver… and so did firms like Borders and Circuit City that were disrupted by the internet era.

So, the question isn’t whether AI is a big deal.

That debate is over.

The question is: As investors, how can we profit?

The Coming AI Reckoning My InvestorPlace colleague Eric Fry believes the big profit opportunities will be in the “Appliers.” These aren’t the firms building AI. They’re the ones using it to transform entire industries.

Think sensors, robotics, industrial systems, and security infrastructure. Companies with hard-to-replicate data edges and real-world integration that can’t be vibe-coded away.

He sees this “AI Reckoning” as a major inflection point. In the coming months, he believes we’re going to see a wealth shift from those holding the wrong stocks to those positioned in AI Applier companies that connect this digital technology to the physical world.

He’s put together a free presentation that goes far deeper than I can here – naming the specific stocks he believes are most at risk, and the ones positioned to capture the upside as this shift accelerates.

The scenario we started with may sound extreme.

But the forces behind it are already here—and they’re beginning to reshape which companies win, and which ones don’t.

If you own any AI-adjacent stocks (and at this point, who doesn’t?), it’s worth seeing what he found – especially before this shift becomes more obvious to the broader market.

Thomas Yeung, CFA

Market Analyst, InvestorPlace

P.S. A lot of investors think the biggest AI gains are already behind us. Eric Fry believes the opposite may be true… but only for a specific group of companies that most people aren’t watching. In his latest presentation, he explains why some of today’s biggest winners could struggle from here, and how a lesser-known group could deliver outsized gains in the next phase of the cycle. It’s worth a look if you haven’t seen it yet.

FAQ What is agentic AI and why does it matter for investors? Agentic AI refers to artificial intelligence systems that can act autonomously — executing complex tasks, making decisions, and solving problems without step-by-step human input. Unlike traditional AI chatbots that respond to prompts, agentic AI operates more like a self-directed digital worker. For investors, it matters because it threatens the business models of widely held SaaS companies while simultaneously creating a new class of winners among companies that deploy it effectively.

What is the “SaaSpocalypse” and which stocks are most at risk? The “SaaSpocalypse” refers to the rolling collapse in software-as-a-service stocks triggered by agentic AI. For 15 years, SaaS companies charged businesses per employee per month to access software dashboards — a model that produced 95%+ gross margins. Agentic AI bypasses those dashboards entirely, connecting directly to underlying systems and automating the work those licenses supported. Companies most at risk are those whose value proposition is access rather than irreplaceable data or deep workflow integration.

What are “AI Appliers” and why does Eric Fry believe they represent the next big opportunity? AI Appliers are companies that use artificial intelligence to transform physical industries — think sensors, robotics, industrial systems, and security infrastructure — rather than companies building the underlying AI models themselves. Eric Fry believes these companies represent the next phase of the AI wealth transfer because they combine hard-to-replicate data advantages with real-world integration that can’t easily be automated away. Many are still under the radar while the market remains fixated on richly valued AI builders.

What is Claude Mythos and what makes it different from previous AI systems? Claude Mythos is an AI system released by Anthropic in April 2025 that was so capable the company immediately restricted access to it. What made it significant wasn’t just its power — it was the fact that it autonomously discovered zero-day cybersecurity vulnerabilities in every major operating system, including one that had gone undetected for 27 years. Anthropic confirmed it never programmed Mythos to do this. The capabilities emerged on their own as a byproduct of advances in reasoning and autonomy — a signal that AI development has crossed an important threshold.

Revenue of $206.8 million, up 13% year-over-year; reflecting continued growth in higher-value subscriptions and contributions from compliance product enhancements Subscription revenue of $130.2 million up 12% year-over-year, driven by growth in differentiated human-in-the-loop service offeringsNet income of $1.1 million and net income margin of 1%Adjusted EBITDA of $36.5 million and Adjusted EBITDA margin of 18%Commitment to shareholder returns; completed $43.5 million of share repurchases in the quarter
Ended the quarter with cash and cash equivalents of $183.2 million, delivered $47.3 million in cash from operating activities and $41.0 million in free cash flow with no debt outstanding as of March 31, 2026
MOUNTAIN VIEW, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its first quarter ended March 31, 2026.

“LegalZoom delivered another strong quarter, clearly illustrating that our strategy is working,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “In an AI-driven world, we win by getting customers to the finish line, combining technology with real human expertise to complete the last mile.”

Noel Watson, LegalZoom’s Chief Operating Officer and Chief Financial Officer, added, “We delivered strong first quarter results, with 13% revenue growth ahead of expectations. Our performance was driven by momentum in higher-value subscriptions and increased seasonal strength in annual report filings from our enhanced compliance offering. Importantly, our core growth drivers continue to build and will scale through the back half of the year, supporting our increased full-year revenue outlook.”

First Quarter 2026 Highlights

Revenue was $206.8 million for the quarter, up 13% year-over-year. Transaction revenue of $76.6 million increased 15% year-over-year.Subscription revenue of $130.2 million grew 12% year-over-year. Net income was $1.1 million for the quarter, or 1% of revenue, compared to $5.1 million, or 3% of revenue, in the same period in 2025.Adjusted EBITDA was $36.5 million for the quarter, or 18% of revenue, compared to $37.0 million, or 20% of revenue, in the same period in 2025.Non-GAAP net income was $22.1 million for the quarter compared to $23.8 million in the same period in 2025.Cash and cash equivalents were $183.2 million as of March 31, 2026 compared to $203.1 million as of December 31, 2025.Cash flows provided by operating activities were $47.3 million for the quarter ended March 31, 2026 compared to $50.7 million in the same period in 2025.Free cash flow was $41.0 million for the quarter ended March 31, 2026 compared to $41.3 million in the same period in 2025.Basic and diluted net income per share was $0.01 for the quarter compared to a basic and diluted net income per share of $0.03 for the same period in 2025. Basic and diluted Non-GAAP net income per share was $0.13 and $0.12, respectively, for the quarter in 2026 compared to basic and diluted Non-GAAP net income per share of $0.13 for the same period in 2025. Key Business Metrics and Non-GAAP Financial Measures

(Unaudited, in thousands except AOV, ARPU and percentages)

 Three Months Ended
   March 31, % Growth   (Decline)  2026   2025  YOYTotal revenue$206,781  $183,110  13%Transaction revenue$76,623  $66,853  15%Subscription revenue$130,158  $116,257  12%Gross profit$132,253  $116,550  13%Gross margin 64%  64% —%Net Income$1,104  $5,127  (78)%Net income margin 1%  3% (67)%Net Income per share — basic:$0.01  $0.03   Net Income per share — diluted:$0.01  $0.03   Net cash provided by operating activities$47,282  $50,703  (7)%Non-GAAP Financial Measures     Non GAAP net income$22,070  $23,822  (7)%Non GAAP net income per share — basic:$0.13  $0.13   Non GAAP net income per share — diluted:$0.12  $0.13   Adjusted EBITDA$36,462  $37,012  (1)%Adjusted EBITDA margin 18%  20% (10)%Free cash flow$40,974  $41,325  (1)%Key Business Metrics     Transaction units 375   341  10%Business formations 142   131  8%Average order value (AOV)$205  $196  5%Subscription units at period end 1,920   1,924  —%Average revenue per subscription unit (ARPU) at period end$263  $252  4%Certain percentages may not recalculate due to rounding.  Financial Guidance and Outlook

LegalZoom is increasing its revenue outlook and maintaining its Adjusted EBITDA outlook for the full year ending December 31, 2026 as follows:

Revenue is expected to be in the range of $810 million to $830 million, or 8% year-over-year growth at the midpoint. This compares to the Company’s previous revenue outlook in the range of $805 million to $825 million. LegalZoom’s outlook reflects the continued scaling of our higher-value growth initiatives and ongoing momentum from our partner channel through the remainder of the year. Adjusted EBITDA is expected to be in the range of $190 million to $200 million, or 13% year-over-year growth at the midpoint, reflecting improved gross margin, disciplined cost management and AI-driven efficiencies realized in the back-half of the year.
For the second quarter ending June 30, 2026 LegalZoom expects:

Revenue in the range of $203 million to $207 million, or 6% year-over-year growth at the midpoint. Relative to the first quarter, this growth rate reflects a full lapping of the Formation Nation acquisition as well as a reduced volume of annual reports filings due to seasonality. Adjusted EBITDA in the range of $40 million to $42 million, a 5% year-over-year increase at the midpoint.
Webcast and Conference Call Information

A webcast and conference call to discuss first quarter 2026 results is scheduled for today, May 6, 2026, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.

A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com/. An archived replay of the webcast also will be available shortly after the live event.

Forward-Looking Statements

This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.

The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to sustain our revenue growth rate and remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2026, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income margin, Non-GAAP net income per share and free cash flow. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide management and our investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP.

We define Adjusted EBITDA as net income adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation and certain non-recurring income and expenses from time to time. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.

Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, preparing and approving our annual budget and operational planning. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. There are a number of limitations related to the use of Adjusted EBITDA rather than net income, which include that Adjusted EBITDA:

may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure;does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future;does not reflect changes in, or cash requirements for, our working capital needs;excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; anddoes not reflect certain expenses that we do not consider representative of our underlying operating performance, but that reduce cash available to us. We define Non-GAAP net income as net income adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense and certain non-recurring income and expenses from time to time, net of related income tax impacts. We define net income margin as net loss as a percentage of revenue. We define Non-GAAP net income margin as Non-GAAP net income as a percentage of revenue. We define Non-GAAP net income per share attributable to common stockholders as Non-GAAP net income divided by basic and diluted weighted-average common stock.

Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We believe free cash flow provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet, once our business needs and obligations are met. The usefulness of free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry.

We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under “Financial Guidance and Outlook” above), as we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

LegalZoom

LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or the LegalZoom-owned law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to estate planning and ongoing legal support.

With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com. 

Contact
Investor Relations
[email protected]

LegalZoom.com, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except par values)
     March 31,
2026 December 31,
2025Assets   Current assets:   Cash and cash equivalents$183,152  $203,100 Accounts receivable, net of allowance 24,573   20,589 Prepaid expenses and other current assets 20,551   18,234 Total current assets 228,276   241,923 Property and equipment, net 55,589   58,045 Goodwill 140,705   140,705 Intangible assets, net 16,542   18,152 Operating lease right-of-use assets 14,199   13,414 Deferred income taxes 29,446   31,884 Other assets 7,101   7,399 Total assets$491,858  $511,522 Liabilities and stockholders’ equity    Current liabilities:   Accounts payable$38,126  $27,167 Accrued expenses and other current liabilities 57,373   83,361 Deferred revenue 223,242   203,653 Operating lease liability 4,743   4,338 Total current liabilities 323,484   318,519 Operating lease liability, non-current 10,479   10,025 Deferred revenue 260   277 Other liabilities 10,727   10,819 Total liabilities 344,950   339,640 Commitments and contingencies   Stockholders’ equity:   Preferred stock, $0.001 par value; 100,000 shares authorized at March 31, 2026 and December 31, 2025, none issued or outstanding at March 31, 2026 and December 31, 2025 —   — Common stock, $0.001 par value; 1,000,000 shares authorized; 173,402 shares and 177,624 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 175   179 Additional paid-in capital 1,323,587   1,305,936 Accumulated deficit (1,177,128)  (1,134,414)Accumulated other comprehensive (loss) income 274   181 Total stockholders’ equity 146,908   171,882 Total liabilities and stockholders’ equity$491,858  $511,522          LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
     Three Months Ended
March 31,   2026   2025 Revenue $206,781  $183,110 Cost of revenue  74,528   66,560 Gross profit  132,253   116,550 Operating expenses:    Sales and marketing  78,668   61,378 Technology and development  19,605   21,322 General and administrative  31,216   39,221 Gain on sale of assets held for sale  —   (14,337)Total operating expenses  129,489   107,584 Income from operations  2,764   8,966 Interest expense  (676)  (182)Interest income  1,648   1,483 Other income, net  81   347 Income before income taxes  3,817   10,614 Provision for income taxes  2,713   5,487 Net income $1,104  $5,127 Net income attributable to common stockholders—basic and diluted    Net income per share — basic: $0.01  $0.03 Net income per share — diluted: $0.01  $0.03 Weighted-average shares used to compute net income per share — basic:  174,866   176,829 Weighted-average shares used to compute net income per share — diluted:  177,013   180,616           LegalZoom.com, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
   Three Months Ended
March 31,  2026   2025 Cash flows from operating activities   Net income$1,104  $5,127 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 11,137   10,406 Amortization of debt issuance costs 47   56 Amortization of right-of-use assets 968   618 Stock-based compensation 21,314   29,756 Gain on sale of assets held for sale —   (14,337)Change in fair value of other equity security —   (302)Loss on disposal of property and equipment —   99 Deferred income taxes 2,438   1,996 Change in fair value of other equity security —   (302)Unrealized foreign exchange loss 143   76 Changes in operating assets and liabilities, net of effects of business combination:   Accounts receivable (3,984)  (9,148)Prepaid expenses and other current assets (2,348)  (2,238)Other assets 412   204 Accounts payable 11,248   5,329 Accrued expenses and other liabilities (13,882)  (3,247)Operating lease liabilities (896)  (536)Income tax payable 7   6 Deferred revenue 19,574   26,838 Net cash provided by operating activities 47,282   50,703 Cash flows from investing activities   Acquisition, net of cash acquired —   (48,123)Purchase of property and equipment (6,308)  (9,378)Proceeds from sale of assets held for sale —   37,051 Net cash used in investing activities (6,308)  (20,450)Cash flows from financing activities   Repayment of capital lease obligations —   (2)Payment of deferred consideration from business acquisition (12,514)  — Repurchase of common stock (43,467)  — Shares surrendered for settlement of minimum statutory tax withholding (4,887)  (5,942)Proceeds from issuance of stock under employee stock plans 16   43,548 Net cash (used in) provided by financing activities (60,852)  37,604 Effect of exchange rate changes on cash and cash equivalents (70)  52 Net (decrease) increase in cash and cash equivalents (19,948)  67,909 Cash and cash equivalents, at beginning of the period 203,100   142,064 Cash and cash equivalents, at end of the period$183,152  $209,973          Adjusted EBITDA and Adjusted EBITDA Margin

The following table presents a reconciliation of net income to Adjusted EBITDA for each of the periods indicated (unaudited):

  Three Months Ended
March 31,   2026   2025   (in thousands, except percentages)Reconciliation of net income to Adjusted EBITDA    Net income $1,104  $5,127 Interest expense  676   182 Interest income  (1,648)  (1,483)Provision for income taxes  2,713   5,487 Depreciation and amortization  11,137   10,406 Other income, net  (81)  (347)Stock-based compensation  21,314   29,756 Transaction-related expenses(1)  604   1,543 Gain on sale of assets held for sale  —   (14,337)Restructuring costs(2)  643   678 Adjusted EBITDA $36,462  $37,012 Net income margin  1%  3%Adjusted EBITDA margin  18%  20% (1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.(2)For 2026 and 2025, restructuring costs are related to the reduction of our U.S. headcount.   Non-GAAP Net Income, Non-GAAP Net Income Margin and diluted Non-GAAP Net Income Per Share

The following table presents a reconciliation of net income to Non-GAAP net income for each of the periods indicated (unaudited):

  Three Months Ended
March 31,   2026   2025   (in thousands, except per share amounts)Reconciliation of net income to Non-GAAP net income    Net income $1,104  $5,127 Amortization of acquired intangible assets  1,610   1,647 Stock-based compensation  21,314   29,756 Transaction-related expenses(1)  604   1,543 Restructuring costs(2)  643   678 Gain on sale of assets held for sale  —   (14,337)Income tax effects(3)  (3,205)  (592)Non-GAAP net income  22,070   23,822 Net income margin  1%  3%Non-GAAP net income margin  11%  13%Net income per share — basic $0.01  $0.03 Net income per share — diluted $0.01  $0.03 Non-GAAP net income per share — basic $0.13  $0.13 Non-GAAP net income per share — diluted $0.12  $0.13 Weighted-average shares used to compute net income per share — basic  174,866   176,829 Weighted-average shares used to compute net income per share — diluted  177,013   180,616 Weighted-average shares used to compute Non-GAAP net income per share — basic  174,866   176,829 Weighted-average shares used to compute Non-GAAP net income per share — diluted  177,013   180,616  (1)For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.(2)For 2026 and 2025, restructuring costs are related to the reduction of our U.S. headcount.(3)The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable.   The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):

  Three Months Ended
March 31,   2026  2025  (in thousands, except per share amounts)Non-GAAP net income and Non-GAAP net income per share:    Non-GAAP net income $22,070 $23,822Reconciliation of denominator for net income per share to Non-GAAP net income per share:    Weighted-average shares used to compute net income per share — basic:  174,866  176,829Effect of potentially dilutive securities:    Options to purchase common stock  36  60RSUs and PSUs  2,111  3,713Employee stock purchase plan  —  14Weighted-average common stock used in computing Non-GAAP net income per share — diluted  177,013  180,616Non-GAAP net income per share — basic $0.13 $0.13Non-GAAP net income per share — diluted $0.12 $0.13        Free Cash Flow

The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):

  Three Months Ended
March 31,   2026   2025   (in thousands)Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow    Net cash provided by operating activities  47,282   50,703 Purchase of property and equipment  (6,308)  (9,378)Free cash flow $40,974  $41,325 

LegalZoom (LZ - Free Report) reported $206.78 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 12.9%. EPS of $0.12 for the same period compares to $0.13 a year ago.

The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $202.39 million. With the consensus EPS estimate being $0.13, the EPS surprise was -10.45%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how LegalZoom performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average revenue per subscription unit (ARPU) at period end: $0.26 million versus the three-analyst average estimate of $0.26 million.Subscription units at period end: 1,920 versus the three-analyst average estimate of 1,952.Average order value (AOV): $205.00 compared to the $206.59 average estimate based on three analysts.Transaction units: 375 compared to the 336 average estimate based on three analysts.Business formations: 142 versus 146 estimated by two analysts on average.Revenue- Subscription: $130.16 million versus the three-analyst average estimate of $130.15 million. The reported number represents a year-over-year change of +12%.Revenue- Transaction: $76.62 million versus the three-analyst average estimate of $72.03 million. The reported number represents a year-over-year change of +14.6%.View all Key Company Metrics for LegalZoom here>>>

Shares of LegalZoom have returned +12% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #SMB--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today announced a major reinvention of LegalZoom Virtual Mail service for business customers. The updated and enhanced offering combines LegalZoom's trusted legal and compliance solutions with a best-in-class AI-powered digital mailroom, giving business customers a cleaner, faster way to protect their privacy, manage postal mail from any device, and reclaim lost time. Most of the largest.

May 11, 2026 09:00 ET  | Source: LegalZoom.com, Inc.

MOUNTAIN VIEW, Calif., May 11, 2026 (GLOBE NEWSWIRE) -- LegalZoom. (Nasdaq: LZ), America’s #1 online legal services company, today announced that Jeff Stibel, Chairman and Chief Executive Officer, and Noel Watson, Chief Operating Officer and Chief Financial Officer, will present at the J.P. Morgan 2026 Global Technology, Media and Communications Conference in Boston, Massachusetts on Monday, May 18, 2026.

Management’s fireside chat will begin at 9:45 a.m. ET. A live audio webcast and replay of the presentation will be available on the LegalZoom Investor Relations website at https://investors.legalzoom.com.

About LegalZoom
LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or our own law firm—we offer the tools and guidance people need to confidently manage everything from business formation and compliance to intellectual property protection and ongoing business management and legal support.

As AI reshapes how legal work gets done, LegalZoom is at the forefront of the human-in-the-loop approach, ensuring that the speed and efficiency of AI is always backed by the judgment and accountability of qualified professionals. With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com.

Contact

Investor Relations
[email protected]

LegalZoom remains a compelling buy as overblown AI-driven pessimism has driven shares to deeply discounted valuation multiples. LZ's Q1 results beat expectations, with 13% y/y revenue growth and a guidance raise, demonstrating resilience amid macro headwinds and AI disruption fears. The company's shift toward higher-value subscription packages, including its concierge suite, is driving ARPU growth and deeper, more durable customer relationships.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #AI--LegalZoom (Nasdaq: LZ), America's #1 online legal services company, today released findings from a comprehensive survey of 1,000 respondents — 500 aspiring founders and 500 current business owners — across the United States. The survey examined AI adoption rates, how and when founders rely on AI tools, the perceived value it provides, and what concerns remain. The results paint a picture of a business community that is rapidly embracing AI, with both enth.

Key Takeaways CLF reported a narrower Q1 adjusted loss of 40 cents, beating estimates and improving year over year. CLF posted revenues of $4.92B, topping estimates, with higher steel prices and modest volume decline. Cleveland-Cliffs reaffirmed 2026 outlook, maintaining shipment, capex, and expense projections. Cleveland-Cliffs Inc.’s (CLF - Free Report) first-quarter 2026 adjusted loss was 40 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. It reported an adjusted loss of 93 cents per share in the prior-year quarter.

Revenues increased 6.3% year over year to $4,922 million. The top line beat the Zacks Consensus Estimate of $4,834.5 million.

Cleveland-Cliffs Inc. Price, Consensus and EPS SurpriseCLF’s Operational HighlightsThe company reported Steelmaking revenues of roughly $4.8 billion, up around 6.5% year over year.

The average net selling price per net ton of steel products was $1,048 in the quarter, up around 6.9% year over year. The metric was below the consensus estimate of $1,056. 

External sales volumes for steel products were roughly 4.1 million net tons, down around 0.7% year over year. The figure surpassed the consensus estimate of 4.06 million net tons.

Financial Position of CLFCleveland-Cliffs ended the first quarter with cash and cash equivalents of $45 million, down around 21% from the prior quarter. Long-term debt increased 7% sequentially to $7,763 million.

As of March 31, 2026, the company had $3.1 billion in total liquidity.

CLF’s OutlookThe company reaffirmed its full-year 2026 outlook, maintaining expectations for steel shipment volumes of roughly 16.5-17 million net tons. It continues to project capital expenditures of about $700 million and selling, general, and administrative (SG&A) expenses of approximately $575 million. Depreciation, depletion, and amortization are expected to total around $1.1 billion, while cash pension and OPEB payments and contributions are anticipated to remain near $125 million. 

Price Performance of CLFShares of CLF have gained 26.1% over the past year compared with an 81.4% rise in its industry. 

Image Source: Zacks Investment Research

CLF’s Zacks Rank & Key PicksCLF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth a look in the basic materials space are Galiano Gold Inc. (GAU - Free Report) , Materion Corporation (MTRN - Free Report) , and Nexa Resources S.A. (NEXA - Free Report) .

Galiano is slated to report quarterly results on May 13. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share. GAU has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Materion is expected to report first-quarter results on April 29. The Zacks Consensus Estimate for MTRN’s first-quarter earnings is pegged at $1.24 per share. MTRN currently carries a Zacks Rank #2.

NEXA is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for NEXA’s first-quarter earnings is pegged at 61 cents per share. NEXA currently carries a Zacks Rank #2.

Today's Change

(

10.47

%) $

1.30

Current Price

$

13.71

Cleveland-Cliffs (CLF +10.47%), a steel producer offering hot-rolled, cold-rolled, and coated products in the U.S. and Canada, closed Monday at $10.62, up 8.86%. The stock moved higher after investors digested last week’s first-quarter results that modestly beat revenue expectations and showed a narrower loss. Domestic steel sector stocks will continue reporting first-quarter results this week.
Trading volume reached 41.9 million shares, coming in about 123% above its three-month average of 18.8 million shares. Cleveland-Cliffs IPO'd in 1987 and has grown 518% since going public.

How the markets moved todayThe S&P 500 (^GSPC +1.75%) inched up 0.12% to 7,174, while the Nasdaq Composite (^IXIC +2.54%) added 0.20% to finish at 24,887. Among steel industry peers, Nucor (NUE +4.16%) closed at $215.05, up 0.35%, and Steel Dynamics (STLD +4.18%) finished at $225.04, down 0.77%, underscoring mixed sentiment across producers.

What this means for investorsInvestors are watching steel sector earnings to assess fundamental company strength in a strong demand and pricing environment. Cleveland-Cliffs shares initially dropped after its Q1 report last week as investors focused on a net loss exacerbated by one-time energy costs.

Amid a strong steel market, however, Cliffs shipments and revenue increased. Investors looking toward future results are now reacting to peers Steel Dynamics and Nucor confirming strong order book demand and pricing. That should also translate into improved earnings for Cleveland-Cliffs.

Investors should hone in on automotive demand, specifically, as it drives more business for Cliffs than its peers. The company cited that as a headwind in Q1.

Howard Smith has positions in Nucor and has the following options: short June 2026 $200 calls on Nucor, short May 2026 $190 calls on Nucor, and short May 2026 $230 calls on Nucor. The Motley Fool recommends Steel Dynamics. The Motley Fool has a disclosure policy.

Cleveland-Cliffs (CLF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this mining company have returned +23.9%, compared to the Zacks S&P 500 composite's +12.2% change. During this period, the Zacks Steel - Producers industry, which Cleveland-Cliffs falls in, has gained 22.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Cleveland-Cliffs is expected to post a loss of $0.11 per share for the current quarter, representing a year-over-year change of +78%. Over the last 30 days, the Zacks Consensus Estimate has changed -145.5%.

The consensus earnings estimate of -$0.41 for the current fiscal year indicates a year-over-year change of +83.5%. This estimate has changed +6.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.43 indicates a change of +205.2% from what Cleveland-Cliffs is expected to report a year ago. Over the past month, the estimate has changed -32.8%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cleveland-Cliffs is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Cleveland-Cliffs, the consensus sales estimate of $5.26 billion for the current quarter points to a year-over-year change of +6.6%. The $20.42 billion and $21.09 billion estimates for the current and next fiscal years indicate changes of +9.8% and +3.3%, respectively.

Last Reported Results and Surprise HistoryCleveland-Cliffs reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +6.3%. EPS of -$0.4 for the same period compares with -$0.92 a year ago.

Compared to the Zacks Consensus Estimate of $4.83 billion, the reported revenues represent a surprise of +1.81%. The EPS surprise was +9.09%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Cleveland-Cliffs is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cleveland-Cliffs. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

The materials sector accounts for just 1.9% of the S&P 500, barely nudging out real estate for 10th place among the 11 sectors represented in that index. Despite that diminutive status, the materials sector is delivering for investors this year. As represented by a bellwether exchange-traded fund (ETF), the materials stocks residing in the S&P 500 are beating the parent index by 700 basis points so far in 2026.

Imagine what that gap would look like if an industrial boom were to come to fruition.

Some experts believe that scenario is playing out right now, proclaiming that artificial intelligence (AI) is the linchpin of the "fourth industrial revolution." And if prognostications are correct that this revolution is still in its infancy, the following stocks could have more upside in store for smart investors.

These materials stocks could be leaders in a new industrial revolution. Image source: Getty Images

Forged in steel, remaking itself with AI help In a bygone era of AI investing -- say, maybe, just two years ago -- few investors would have flocked to steel stocks as AI plays, but today, that notion is to be embraced, not scoffed at. Up nearly 50% over the past year, Cleveland-Cliffs (CLF +10.47%), the largest producer of flat-rolled steel in the U.S., has AI legitimacy, and not just because it's looking to sell idled mills to data center companies to reduce debt.

Obviously, any new data center being constructed needs steel, potentially representing another end market for Cleveland-Cliffs, but the company's AI ties run even deeper than that. All the talk about energy as a "bottleneck" or "chokepoint" for hyperscalers is relevant to investors considering this steel stock, because upgrading or building new transmission cores requires grain-oriented electrical steel (GOES).

Guess who has the U.S. monopoly on GOES? Cleveland-Cliffs. From 2025 through 2030, the GOES market is expected to grow at a compound annual growth rate (CAGR) of 5.6%, but in North America, where Cleveland-Cliffs does business, that CAGR is estimated to be 6.1%.

And for good measure, the steelmaker recently inked a deal with Palantir Technologies to use AI in its logistics and manufacturing processes. That could result in operational efficiencies over time.

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Not a chip stock, but... Air Products and Chemicals (APD +0.58%) definitely isn't a semiconductor stock, but what's good for the chip industry can benefit this materials name because it's a major supplier of the industrial gases needed to manufacture electronic components, and that's a big reason the company is sitting on a $9 billion order backlog.

As just one example of Air Products' enviable positioning on the picks-and-shovels side of the AI trade, the materials company recently notched a deal to construct and operate a specialty gas facility for Samsung Electronics. Yes, that Samsung.  The South Korean company, a giant in dynamic random-access memory, is working to address a key AI bottleneck.

Air Products isn't just an AI story. It's an execution story. The shares are up 23.5% year to date, in part because management is navigating a tough environment with aplomb, and Wall Street is taking note. There's a belief that Air Products is out of its "show me" phase and can engineer earnings growth, aided by pricing power.

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Gassing up, Part 2 Linde (LIN +1.23%) is another producer of industrial gas, and in the helium realm, it forms an oligopoly with Air Products. These companies' podium positions in the global helium market are worth noting because supplies of that industrial gas are currently constrained by the war in Iran, as a significant share of helium flows through the Strait of Hormuz. The other issue confounding the helium market is that Russia is a major producer of the gas, and, because of Western sanctions, companies like Linde can't source it there.

That's rough on chipmakers because helium is essential for wafer cooling and contamination prevention. In a telling anecdote, the word "helium" was mentioned roughly a dozen times on Linde's first-quarter earnings conference call with sell-side analysts.

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Linde notes it's well-positioned to meet current helium demand, supported by long-term commitments it's working to secure. Linde's ability to keep helium customers satisfied in a challenging environment is commendable and could pave the way for long-term share appreciation, as helium is irreplaceable in chip manufacturing.

So, without helium, there is no fourth industrial revolution, which supports the case for Linde and rival Air Products.

Cleveland-Cliffs (CLF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this mining company have returned +11.2% over the past month versus the Zacks S&P 500 composite's +3.3% change. The Zacks Steel - Producers industry, to which Cleveland-Cliffs belongs, has gained 5.1% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Cleveland-Cliffs is expected to post a loss of $0.14 per share for the current quarter, representing a year-over-year change of +72%. Over the last 30 days, the Zacks Consensus Estimate has changed -1280%.

For the current fiscal year, the consensus earnings estimate of -$0.46 points to a change of +81.5% from the prior year. Over the last 30 days, this estimate has changed -27.8%.

For the next fiscal year, the consensus earnings estimate of $0.3 indicates a change of +165% from what Cleveland-Cliffs is expected to report a year ago. Over the past month, the estimate has changed -44.4%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cleveland-Cliffs is rated Zacks Rank #4 (Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Cleveland-Cliffs, the consensus sales estimate for the current quarter of $5.21 billion indicates a year-over-year change of +5.5%. For the current and next fiscal years, $20.38 billion and $21.08 billion estimates indicate +9.5% and +3.4% changes, respectively.

Last Reported Results and Surprise HistoryCleveland-Cliffs reported revenues of $4.92 billion in the last reported quarter, representing a year-over-year change of +6.3%. EPS of -$0.4 for the same period compares with -$0.92 a year ago.

Compared to the Zacks Consensus Estimate of $4.83 billion, the reported revenues represent a surprise of +1.81%. The EPS surprise was +9.09%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Cleveland-Cliffs is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cleveland-Cliffs. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

CLEVELAND--(BUSINESS WIRE)--Cleveland-Cliffs Inc. (NYSE: CLF) was named 2025 GM Supplier of the Year by General Motors at its 34th annual Supplier of the Year event. Cleveland-Cliffs was the only North American steel producer recognized this year. This is the ninth time the company has received the award. Shilpan Amin, Senior Vice President, Global Chief Procurement and Supply Chain Officer, General Motors stated, “Supplier of the Year is one of those key moments our whole team looks forward to.

Cleveland-Cliffs Inc (NYSE:CLF) stock is up 7.2% to trade at $12.85 today, on track for its best single-session gain in over a month. The steel company was awarded General Motors’ (GM) Supplier of the Year for 2025 earlier in the month, and has reaped the benefits of elevated steel prices from the spring. Thanks to a 24% one-week gain and five-day win streak, the Ohio-based, flat-rolled steel manufacturer is trading at its highest level since a 16.4% post-earnings bear gap on Feb. 9.

This torrid rally has bullish quantitative implications, if past is precedent. Per Schaeffer’s Senior Quantitative Analyst Rocky White, CLF has cleared its 100-day moving average. Per White, this “crossover” event has happened 11times in the last 10 years, after which CLF was higher one month later 73% of the time, averaging a gain of 6.7%. From its current perch, a similar move higher would put the shares back above their year-to-date breakeven level.

CLF Stock Chart With SI and RSI

Schaeffer's

Cleveland-Cliffs- stock is now up 101.5% in the last 12 months, and flashed a similar bullish signal earlier in May. Keep in mind the trendline connecting October highs, plus CLF’s 14-Day Relative Strength Index (RSI) on the cusp of “overbought” territory at 70.

A short squeeze could keep the wind at the equity’s back. Bearish bettors have stagnated in the two most recent reporting periods, yet the 4.61 million shares sold short account for roughly 15% of CLF’s total available float. At the stock’s average pace of trading, it would take shorts nearly five full trading days to buy back their bearish bets.

Keep an eye on analyst sentiment as well. Of the 14 brokerages covering CLF, 12 maintain “hold” or worse ratings, while the consensus 12-month price target of $10.86 is a 16.3% discount to its current perch. A round of overdue bull notes could also support this bullish thesis for the summer. The shift could already be in motion; Barclays initiated coverage on CLF with an “underweight” rating and $9 price target last week.

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Good news for options traders is the stock’s Schaeffer’s Volatility Scorecard (SVS) comes in at 89out of 100. In other words, the shares have consistently realized higher volatility than its options have priced in over the past 12 months.

On June 02, 2026, Cleveland-Cliffs Inc CLF shares rose 8.6%, bringing the current price to $14.75. This price is significantly influenced by a strong performance over the past month, with shares gaining 40.3%. Over the last year, CLF has seen a remarkable rise of 105.4%, although it has traded within a 52-week range of $6.71 to $16.70.

GF Value™ verdict: Current price of $14.75 vs GF Value™ of $11.86 indicates that CLF is 24.4% overvalued.GF Score™ of 74/100 suggests that CLF is ranked as above average in terms of its overall quality and potential.Most notable signal: CLF has not experienced any insider transactions in the last 3 months, indicating a lack of insider confidence or activity. Is CLF Overvalued or Undervalued? The current price of Cleveland-Cliffs Inc CLF at $14.75 is substantially above the GF Value™ estimate of $11.86, which classifies the stock as 24.4% overvalued. This suggests that there may be a lack of margin of safety for potential investors. The GF Valuation label indicates that the stock is modestly overvalued, which may present risks for those looking to invest at this price point. If CLF's performance does not align with market expectations, there could be downward pressure on the stock price in the future.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, investors should exercise caution as the overvaluation could lead to potential losses if the market corrects itself.

How Does CLF's Valuation Compare to Its History? Metric Current Historical P/E Ratio (TTM) 749.8x 15.2x (5-Year Median) The current P/E ratio of 749.8x is significantly higher than the 5-year median P/E of 15.2x, indicating that the stock is trading well above its historical valuation. This analysis agrees with the GF Value™ verdict, reinforcing the argument that CLF is overvalued at its current price. Such a high P/E ratio may further suggest that investor expectations are exceedingly optimistic, which could lead to volatility if those expectations are not met.

What Does CLF's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 3/10 Profitability 7/10 Growth 5/10 Valuation 6/10 Momentum 10/10 The GF Score™ of 74/100 indicates a solid overall performance, with particularly strong momentum at a perfect score of 10/10. However, the financial strength score of 3/10 suggests weaknesses in the company’s financial stability, which may raise concerns among potential investors. Profitability and valuation ranks of 7/10 and 6/10 respectively indicate that while the company is somewhat profitable, there are better investment opportunities available in the market.

What Are Insiders Doing with CLF Stock? There have been no insider transactions in the last three months for Cleveland-Cliffs Inc CLF . This lack of activity can suggest that insiders may not have confidence in the stock's performance at its current valuation or that they are anticipating a downturn. Insider buying can often be a positive signal, whereas inactivity may point to caution among those closest to the company.

What This Means for Investors Based on the GF Value™ assessment, Cleveland-Cliffs Inc CLF is currently overvalued. The significant gap between the current stock price and the GF Value™ suggests that investors may want to proceed with caution due to the potential for price corrections in the future.

For the complete analysis, visit the Cleveland-Cliffs Inc CLF stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CLF's GF Score™?

CLF's GF Score™ is 74/100, indicating that it is ranked as above average based on key investment criteria.

Is CLF overvalued or undervalued?

CLF is currently overvalued, with a GF Value™ of $11.86 compared to its current price of $14.75, suggesting a 24.4% overvaluation.

What is CLF's P/E ratio?

CLF's current P/E ratio is 749.8x, which is significantly above its 5-year median P/E of 15.2x, indicating that the stock is trading well above its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].